Working towards a stronger future for the signage industry

There has never been a more important time to assess your business practices to ensure that you are adequately managing your cash flow to galvanise the longevity of your company. 

There have been some massive waves created in the post-covid business scape. The most recent being, large construction companies unexpectedly going into receivership or administration. The downfall of these seemingly unshakable construction industry giants is a wake-up call that now is the time to review outdated business practices to shape a stronger and sustainable future for the signage industry.

The signage industry is currently experiencing a boom, due to:

      a backlog of work that has built up during lockdowns.

      the more senior signage business owners leaving the industry and closing operations.

So, potentially, it’s a great time to expand your business and take on as much work as you can. However, if you aren’t working smarter, you could be opening yourself up to huge financial risk. 

Tips to working smarter in the signage industry:

      Deposits: For any projects over $20K, ensure that you take a deposit before starting production. The deposit should cover the cost of materials, in the event that the final payment isn’t met. 

      Don’t work on credit: If a company has fallen behind in payments to you, be wary of continuing to manufacture their projects until invoices are paid. The more credit you allow, the greater loss you may need to absorb if their business unexpectedly folds. 

      Progress payments: For a large job that may take many months to complete (and a lot of materials), consider instigating progress payments to ensure your cash flow is covered at each stage of production.

      Custom Signage: If you are producing custom signage work using materials that can’t be reallocated should the project suddenly stop, ensure you receive a full prepayment, so you aren’t left out of pocket for specialised material if they can’t pay the final bill.

      Quoting: When approached for a new signage project, offer a ballpark estimate over the phone to ensure the client has the appropriate budget.  If the estimate is way above their expectations, you can save yourself the time of having to prepare a complete and detailed quote of works, then better utilise your time. 

      Pricing: Inflation is skyrocketing, and the cost of logistics, utilities, supplies, (and everything) is continuing to rise. As hard as it is, ensure that you don’t jeopardise your cashflow by underquoting to keep clients happy. Reducing your margins is not sustainable to stay competitive.

      Grow the industry talent pool: Invest in training up new staff to bring more skilled labour into the signage industry. Covid shutdowns have seen a lot of skilled signage installers forced to change industry, so consider ways to entice young and creative talent into the industry and take up a signage trade. 

We are proud of the signage industry, and by safeguarding businesses to continue to stay competitive, we are building strength in the signage industry as a whole and keeping the art of signage alive. 

We are here to talk you through the production process and customise our approach to suit your project and delivery requirements. We can give you an idea of lead time, so that you can plan accordingly.

To book in your next signage project, call and speak to us today on 0401 564 556 or send me an email via sean@resolveimagesolutions.com.au

No project is too complicated; we specialise in coming up with creative solutions to even the most complex requirements. Click here to see some of our previous work.